Fed's Lacker says hurdle should be high for pause in tapering

WINCHESTER, Va. Tue Feb 4, 2014 9:57am EST

WINCHESTER, Va. Feb 4 (Reuters) - The U.S. Federal Reserve will probably keep reducing monthly asset purchases at its current pace and any hurdle for a pause ought to be "pretty high", a senior Fed official said on Tuesday.

Richmond Federal Reserve President Jeffrey Lacker said recent moves in financial markets did not seem to have affected the outlook for jobs, a key benchmark for future Fed policy.

"I think the hurdle ought to remain pretty high for pausing in tapering," he told reporters.

"We linked the asset purchase programs to significant improvement in the outlook for labor market conditions, that has definitely occurred, and I don't see financial market developments as having affected the outlook for labor market conditions materially at this point."

The Fed trimmed its monthly asset-purchase program by another $10 billion last week, bringing the total purchases to $65 billion per month.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.